Giving the Buyer Space

My home has so many special features.  I think it would be best if I were at showings so I could explain them to prospective buyers.  Is that ok?

When you are selling your home, its normal to think that only you can fully convey your home’s fine qualities to a buyer.  This leads some sellers to consider the possibility of being home for showings, so that they can make sure that the buyer prospects appreciate all of the home’s amenities.  While this may seem sensible to a seller, nothing could be further from the truth!

When buyers visit your home, it is important that they be allowed the space to imagine the home as their own.  This starts, of course, with home staging, so that the home is not overly personal when the buyers arrive.  But it extends to allowing them to tour the home alone with their buyer agent.  For buyers to buy a home, they must bond to a home.  For buyers to bond to a home, they need to be free to relax in your home and chat with their agent about what they would do to make the home their own.  This will not happen if you are present. So what can you do to make sure they appreciate your home’s qualities?  Hire a listing agent who will design a custom brochure for your home that is available when buyers visit your home.  Such a brochure is your best ammunition – they can take it home and recall all of your home’s wonderful features and get their questions answered as well.

Giving the buyers their space extends to the home inspections as well.  The period during the home inspection is one of normal buyer remorse.  Did we buy the right home?  Will a better home become available? Allowing buyers the freedom to return to your home alone will allow them to bond again to your home and stay committed to it during the sometimes difficult inspection process.

In fact, the only time you should interact with your buyer is at the closing.  From initial showing to return visits, inspections and walk-throughs, you should always vacate your home and give the buyers their space!

 

1410 Pennsylvania Ave- NEW PRICE

Looking for a change of pace? How about a move into the city? Rare Gothic Revival
home on Pittsburgh’s North Side showcasing remarkable architectural features and
grand rooms. Meticulously renovated. 11’ ceilings on main level, hardwood floors,
grand staircase, impressive fireplaces and woodwork. Remodeled kitchen with
48” Wolf commercial grade gas range, well-designed and appointed butler’s pantry/mud room.
Master suite w/ dressing room is a dream come true! Beautifully remodeled bath includes
marble floor, soaking tub, custom shower w/ seamless glass enclosure. Three add’l bedrooms
and two new baths plus upper level laundry room, game room. Professionally landscaped yard,
private back patio, covered front porch. 2 car garage. $659,000   See more…

 

439 Oliver
Located in one of Sewickley’s most sought after neighborhoods, once inside you will be surprised how big this home is! Beautifully remodeled, it offers three spacious finished levels of living space, including a main level bedroom suite! The newer kitchen is open to both the dining area and large family room. Walls of windows overlook the beautiful backyard – French doors open to the private patio. A convenient mudroom provides access to the attached garage. The lower level includes a finished game room, full bath, fifth bedroom and a spacious storage/mechanics/laundry area. Close proximity to all village amenities and schools. Freshly painted interior…move in and enjoy all that Sewickley has to offer. $665,000  See more…

 

 

QUICK SEARCH

I’m ready to answer any questions you have regarding your real estate needs.
 
 
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

The Pre-Inspection Power

I’ve heard that agreements on many homes have fallen through lately from home inspections – why is that?

Our market has traditionally been one where buyers know they are buying old homes and allow the seller some leeway in not presenting a “perfect” home from an inspection standpoint. However, in many parts of the country, this is not the case. Sellers are expected to remedy all issues noted by home inspectors prior to closing. As more and more people migrate here from other parts of the country, our prices are going up, but so are the buyers’ expectations as to a seller’s responsibility for concerns discovered on a home inspection. At the same time, inspectors are getting significantly more particular. And so yes, it is absolutely possible to have purchased a home only two years ago and have new concerns arise that clearly existed and were overlooked when you bought your home. And yes, it is equally possible that you will be expected to fix them and if you refuse, your sale might fall through.

This can often leave a seller feeling like they are the unlucky one who got stuck holding the “hot potato.” As the years pass, the list of “hot button” issues mounts and if you are the owner when the issue is discovered, you will be the one paying the bill even though the home was bought and sold many times in advance of your ownership. These hot button issues include items such as old sewer lines, radon, mold, damp basements, lead water lines, asbestos (fireplace inserts, duct tape, pipe wrap or flooring) knob and tube wiring and pushmatic electric panels. If your home has any of these issues, you should figure you will be the one footing the bill and address them before they become an issue on a home inspection.

The best way to prevent an inspection fall through or an unexpected bill for defects is to have your home inspected before you put it on the market. A pre-inspection will allow you the opportunity to fix those items that can be fixed and disclose the rest to save yourself from a laundry list of requests. Be sure not to ignore the small stuff that comes up or that you know is wrong. For example, when I list a home, I specifically ask sellers if all of their windows open, stay open, shut and lock, and if any are cracked or have broken seals. Sellers more often than not disclose no issues with their windows and yet it is one of the most frequent inspection deficiencies. Take the time to do your homework – get your home inspected – repair or disclose any possible concerns – and save yourself from a long last-minute repair list and potentially even from losing your sale.

518 Irwin Drive –  New listing!

One of Sewickley Village’s most spectacular homes, this classic estate is majestically sited on a nearly one acre lot within easy walking distance of Village amenities – an oasis in the middle of our vibrant walking community. Beautifully appointed and maintained, it showcases rich architectural elements, including a breathtaking spiral staircase that connects all four finished levels of this amazing home. Incorporating an updated design aesthetic, this home seamlessly interweaves its historic architectural beauty with modern amenities including the beautiful huge kitchen open to the fabulous family room, mudroom connecting to the heated garage, “homework” room adjacent to the kitchen, finished lower level gameroom and home gym, and above-garage guest suite. A very special Sewickley Village opportunity. $2,900,000  See more…

16 Highview

It’s time to start planning your summer pool parties at 16 Highview! Nestled on a private 3.87 acre lot in an established neighborhood and featuring a beautiful in-ground pool, the views of sunsets off the
back deck are spectacular! Exceptionally open floorplan is ideal for entertaining! Newly remodeled kitchen features granite countertops and stainless appliances. Two story great room. Main level also features a large den/home office, inviting dining room, laundry adjacent to the kitchen, inviting screened back porch and main level bedroom with remodeled full bath, perfect for a nanny or in-law! The upper level is home to a large master suite with en-suite bath and two additional bedrooms. The lower level is finished with
two gamerooms, full bath, sauna, wine room and three car garage! $625,000 See more…

QUICK SEARCH

I’m ready to answer any questions you have regarding your real estate needs.
 
 
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

The Inspection “Hot Potato”

As a home seller, are there inspection type items that we are simply going to be stuck addressing?

Who can forget the old childhood game – pass the hot potato?  The object, of course, was to not be holding the hot potato when the music stops.  We have our fair share of “hot potatoes” in real estate too, and just like in the childhood game, someone always gets stuck holding the hot potato.

You may wonder, what are these hot potatoes of which I write?  Years ago, it was radon.  If you were selling your home and it had radon levels in excess of the EPA limit of 4.0 pCi/L, you got stuck paying the remediation bill (usually less than $1000) because a buyer isn’t going to agree to buy a home with a radon problem.  That hasn’t changed, but if a home has sold in recent years and ever had radon, chances are it has been remediated.

Next, the media exploded with stories of illness caused by mold in homes and suddenly, sellers were faced with mold inspections.  There is the very bad black mold (Stachybotrs), but honestly, all molds have the potential to make you sick.  As you can imagine, buyers aren’t going to buy a home with a mold problem either, and once again, the seller bears the cost of remediation and often, the cost to solve the cause of the mold problem as well. The cost can be several hundred to several thousand dollars.

These days, the hot potatoes have expanded to include two tricky electrical issues.  Pushmatic electrical panel boxes are very expensive to maintain and the manufacturer is no longer in business.  Most buyers will require a seller to replace these panel boxes – the cost per panel is generally $1500+.  Knob and tube wiring is the other big hot potato for homes built before 1930.  Rewiring an entire home can range between $10,000 – $20,000 and so many homes retain this original wiring.  Most insurance companies will no longer issue new insurance policies on homes with this antiquated wiring.  Therefore, if knob and tube wiring is discovered on an inspection, the cost of the rewire also generally falls to the seller – very few buyers are willing to buy a home (at least not unless they are getting a substantial discount) if it has knob & tube wiring present.

If you own a home with one of these hot potatoes – radon, mold, pushmatic panel or knob & tube wiring – things that years ago wouldn’t have raised an eyebrow – you should expect that when you go to sell your home, you will be stuck with the cost of getting rid of the hot potato, if you haven’t already done so!

907 Nevin

Fantastic remodel at a great price! Top to bottom renovation to this adorable Village home! 4 bedrooms, 3.5 new, stylish baths, 3 finished levels, new 2 car garage. Incredible open floorplan unified by new hardwood floors.  New kitchen with white cabinetry, granite tops, stainless appliances. Doors open to large and inviting, private rear deck.  Move right in and enjoy! $399,000  More Info Here…

319 Scaife

Exceptional Sewickley Heights home will take your breath away with its unparalleled beauty. Sited on 5 private acres, it combines the authentic charm of a Sewickley Heights carriage home with modern amenities and stunning design.  Magazine perfect kitchen with top-of-the-line appliances and granite tops opens to a captivating dining room with fireplace and relaxing family room.  French doors open from the gorgeous living room, also with fireplace, onto the sprawling stone terrace, which spills out effortlessly onto the manicured grounds.  Enjoy coffee or wine relaxing under the wisteria-draped trellis. Incredible master suite with three walk-in closets and remarkable custom bath with radiant floors, Victoria and Albert soaking tub and large shower with custom glass enclosure.  Charming enclosed courtyard. Three car attached garage.  $2,150,000 More Info Here…

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

What Happens After the Inspection

We find the inspection process confusing – do we have to fix everything in the inspection report before we sell our home or just the repairs the buyer requested?

The home inspection report is the document from which your buyer works to make their repair requests of you. Some buyers will ask for everything and others will ask for only those items that they think are important. They may let some things go, for example, if they are planning on renovating an area and anticipate fixing those items as a part of the renovation.

Once you and your buyer agree on a list of repairs, these are memorialized on an addendum. It is that addendum, called a Change in Terms Addendum (“CTA”), from which you work when completing your repairs. You need not refer to the inspection again unless the CTA references it. You do, however, need to make sure that you do everything on the CTA exactly as specified, so be sure to read it carefully and provide a copy to your contractor(s). For example, if the CTA says that you will have GFCI outlets installed by a licensed electrician then you need to make sure you hire a licensed electrician, and not your favorite handyman, to make the repair! If the CTA says you must paint to match existing then you need to take a sample of the existing paint to the paint store and color match it – don’t rely on old paint in cans – paint fades with age and it won’t match. Be very careful to be sure you are complying with the terms of the CTA – if you do not, or if your contractor does not, your closing may be delayed or postponed until the work is done as specified. Along those lines, be sure to review your contactor’s work when complete and make sure that he actually did what you agreed to do on the CTA. If not, request that he return before it becomes a walk-through issue.

And of course, be sure to get paid receipts from all contractors, or if they have not been paid, notify the closing company so that they can be paid at closing. All repairs must be paid for before ownership changes hands so be sure to stay on top of your bills, and provide receipts to the buyers agent.

FEATURED HOMES

457 Maple Lane  
Stately custom designed and built brick colonial on large flat and private lot in the heart of Edgeworth within easy walking distance to Sewickley Village shops and restaurants. Gleaming hardwood floors throughout most of the main and upper levels. Large rooms include large living room with wood-burning fireplace with gas starter, dining room, den (the ideal home office) and spacious kitchen open to large family room with wood-burning fireplace with gas starter. Wall of glass across the back of the home draws the outside in. Incredibly convenient main level laundry and attached garage. Large master suite with updated full bath. Lower level is unfinished and could easily be developed into a huge gameroom. Located in the acclaimed Quaker Valley School District! $695,000

607 Broad Street
Sewickley Village Living does not get any more central than this designer perfect fully remodeled Victorian. Just one block to the absolute center of the Village, easy walking distance to all Village amenities! Renovated from top to bottom with a trendy design aesthetic. Open concept floorplan. Hardwood floors unify the main and second level of the home. Beautiful white kitchen with granite tops ovens to dining room and family space. Sliding and french doors open from kitchen and family room onto newer deck. Convenient main level mudroom and powder room. Fully fenced back lawn area. Upstairs there are four bedrooms and three full baths. Upper level laundry machines offer great convenience. Incredible woodwork throughout, including stunning box beam ceiling in family room. $715,0006

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

The Importance of the Contract

We closed on our new home recently and when we went on the walk through, the seller had not completed the inspection repairs that they had agreed to do and didn’t seem to think was an issue.  Your thoughts?

I have noticed a trend lately away from respecting contracts.  I’m not sure if its because consumers don’t understand what they are signing, are too busy to keep everything straight or just don’t care.  Whatever the reason, the real estate contract and its addendums are what makes a real estate transaction work.  If you want to sell your home, you need some kind of document that binds the buyer to your home so that they don’t just walk away, leaving you holding a home you just moved out of and unable to close on your new home.  It is equally important to the buyer – they need a document by which a seller is actually bound to sell their home so that the buyer is also not sitting on the curb waiting to unload the moving van and unable to get the seller out (and yes, real estate is specific performance – if you sign a contract to sell, you must sell).

There are some basic principles to keep in mind that apply to all contracts. Sellers, if you include something on your disclosure, it is important that you actually leave it behind for the buyer.  The stove and dishwasher are obvious, but what about garage door openers?  When you are listing your home, take the time to be sure that you correctly list what is included – misplace a garage door opener and you are contractually required to buy a new one for the buyer.

If you agree to fix something during an inspection negotiation, then yes, you must actually get it fixed. Its not ok to have the buyer show up for the walk through and find out you haven’t taken care of the agreed upon repairs.  What you signed is legally binding – do what you said you will do or be prepared to give a hefty last minute credit to the buyer.  If you do get the items fixed, be sure to pay your bill before closing!  These repair bills are not the buyers’ responsibility and its also not ok to agree to make a repair and then stick the buyer with the bill.

And remember, the contract requires that your home be in the same condition it was in when the buyer made you the offer.  If you break something, you will need to fix it prior to closing.  At 13 pages, it is a lengthy document but it is important that you understand what you have agreed to do.  We can’t all be attorneys, so be sure to hire a realtor that you have confidence will thoroughly explain what you have signed and help you to be a good seller and honor all of its terms!

 

FEATURED HOMES

219 Orchard Lane

NEW LISTING – A spectacular Sewickley Village transformation!  Large two-story addition of 1000SF+ incorporates a new large family room, mudroom and luxurious master suite. This complete renovation included all new wiring, zoned central A/C added to the home, 2.5 new baths including a gorgeous master bath, addition of main level laundry and new kitchen featuring abundant white cabinetry topped with Quartz, stainless appliances, and large center island overlooking the large great room. New master suite includes vaulted ceiling, spacious walk-in closet with laundry chute, Fenced rear yard with patio.  $650,000   Read more

 

106 Beaver Road

Phenomenal Sewickley Village center hall colonial in Sewickley’s most sought after neighborhood checks all the boxes on your wish list! Incredible historic character is seamlessly blended with modern renovations in a timeless Sited on a 1.7 acre lot with lush mature landscaping and huge green lawns, this home is both incredibly private and in the middle of all the Village excitement! Amazing kitchen open to family room Convenient main level mudroom connects to attached two car garage. Sophisticated master suite with spa-style bath. Up t 5 additional bedrooms, 2.5 additional baths.  $1,350,000   Read more

 

 

 

 

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

Keeping Inspections in Perspective!

From what we hear, it seems buyers are very picky on home inspections these days.  What should a seller expect?

What a Seller needs to be prepared for on a home inspection needs to be evaluated in the context of the entire deal!  Both buyers and sellers need to keep things in perspective.  If a Buyer got a great deal on a home, then the inspection should be more about major things that the Buyer could never have known about.  If a Seller got top dollar for a home, the Seller should expect to be very generous on the inspection resolution with the buyers.  Sellers do need to expect that a buyer paying close to asking price will expect the inspection items to be addressed by the Seller unless the Seller had disclosed them on the Disclosure.

The Disclosure is a Seller’s friend.  What a Seller discloses is supposed to be outside the scope of inspection requests.  These are items that the Buyer should be taking into account when making their initial offer.  Therefore, when filling out the Disclosure, Sellers will want to review it carefully to be sure it is thorough.  Inspectors do not miss anything these days, so it will be far less of a financial blow to a seller if all possible issues are noted up front.

Of course, a pre-inspection may be a Seller’s best approach for a smooth transaction for all parties.  While a seller will spend approximately $400 up front, it gives you a chance to repair or disclose the issues before they possibly destroy a deal.  Remember, if buyers and sellers can’t come to a resolution about inspection concerns, the deal is terminated and both parties move on.  Sellers, you obviously want to sell or you wouldn’t be undergoing the joy of preparing your home for showings.  Keep the big picture in mind and understand that unless you are giving your home away, your buyer will expect you to fix what you didn’t disclose.  Don’t like the sound of that?  Pre-inspect so you know what you will have to address upfront.

FEATURED HOMES

316 Shields Lane

A rare opportunity on one of Sewickley’s most desirable streets. Private yet just blocks from all of Sewickley’s wonderful amenities. Be inspired by the possibilities offered by this all-brick Cape Cod – this property offers its new owners the opportunity to renovate to create their own dream home, or replace with a new home to their specifications.  .43 acre private, flat yard is your own oasis.  Home features hardwood floors throughout, attractive custom kitchen.  $495,000    Learn More

 

63 Thorn Street

Expertly remodeled, 63 Thorn paints a modern landscape on a charming traditional palate to create an exceptional home for the millennium home buyer.

Sited on a large lot with fully fenced back yard. The expertly designed and crafted kitchen (which is open to the family room) is flooded with light from an entire wall of windows that bring the private backyard into this warm and inviting space.  The dining room has also been opened to the back yard through an impressive wall of windows and doors, and spills effortless out onto the new back deck.  The second level is home to a new master suite with large closet and spa-like private bath.  Four additional bedrooms, two full baths and a convenient second floor laundry room complete the upper levels. $1,595,000    Learn More

 

 

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

What to Expect When You’re Inspecting

I’ve heard that agreements on many homes have fallen through lately from home inspections – why is that?

Our market has traditionally been one where buyers know they are buying old homes and allow the seller some leeway in not presenting a “perfect” home from an inspection standpoint. However, in many parts of the country, this is not the case. Sellers are expected to remedy all issues noted by home inspectors prior to closing. As more and more people migrate here from other parts of the country, our prices are going up, but so are the buyers’ expectations as to a seller’s responsibility for concerns discovered on a home inspection. At the same time, inspectors are getting significantly more particular. And so yes, it is absolutely possible to have purchased a home only two years ago and have new concerns arise that clearly existed and were overlooked when you bought your home. And yes, it is equally possible that you will be expected to fix them and if you refuse, your sale might fall through.

This can often leave a seller feeling like they are the unlucky one who got stuck holding the “hot potato.” As the years pass, the list of “hot button” issues mounts and if you are the owner when the issue is discovered, you will be the one paying the bill even though the home was bought and sold many times in advance of your ownership. These hot button issues include items such as radon, mold, damp basements, lead water lines, asbestos (fireplace inserts, duct tape, pipe wrap or flooring) knob and tube wiring and pushmatic electric panels. If your home has any of these issues, you should figure you will be the one footing the bill and address them before they become an issue on a home inspection.

The best way to prevent an inspection fall through or an unexpected bill for defects is to have your home inspected before you put it on the market. A pre-inspection will allow you the opportunity to fix those items that can be fixed and disclose the rest to save yourself from a laundry list of requests. Be sure not to ignore the small stuff that comes up or that you know is wrong. For example, when I list a home, I specifically ask sellers if all of their windows open, stay open, shut and lock, and if any are cracked or have broken seals. Sellers more often than not disclose no issues with their windows and yet it is one of the most frequent inspection deficiencies. Take the time to do your homework – get your home inspected – repair or disclose any possible concerns – and save yourself from a long last-minute repair list and potentially even from losing your sale.

Featured Homes

215 Pine Road

Incredibly charming and perfectly remodeled Edgeworth brick colonial sited on a large level lot, close to all Village amenities and Sewickley Academy.  Beautiful newer kitchen, huge living room, inviting dining room and main level guest room complete the main level. Finished lower level includes full bath. Three additional bedrooms on the upper level.  $599,000

 

 

212 New England Place

Located on a quiet cul-de-sac in a prime Edgeworth location, this spacious colonial is loaded with amenities.  Classic details blend with modern.  Newly refinished hardwood floors unify the main level of the home. New kitchen with stainless appliances is open to dining and family areas.  Three walls of windows flood the family rom with natural light and bring the backyard into this wonderful space. Four large bedrooms, two new baths on the upper level plus a finished lower level with full bath. $595,000

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

THE HOME INSPECTION DILEMMA

We are buying a new home.  Can we skip the home inspection and save a few bucks?

I do not recommend that you skip a home inspection, even with a new home.  Please keep in mind if buying a new home that no matter how nice and reassuring the builder or his realtor representative are, they do not represent you!  I have on many occasions witnessed a builder trying to gloss over obvious deficiencies with new homes.  You need a home inspector to carefully assess your new home so that you aren’t burdened with repair bills later for improper conditions that existed at the time of your closing. While the inspector is there, it’s a good idea to get a pest and radon inspection in addition to a general home inspection.  Both pests and radon are commonplace and can be significant – its wise to know what you are dealing with before you move in.

However, do not make the mistake of assuming that all home inspectors are equally skilled at their profession. Some inspectors gloss over many areas of concern and take a VERY big picture approach, which, while generally not alarming, can also be very unhelpful as you plan for your future improvements to the home.  Others can be incredibly harsh and point out flaws that are inaccurate or irrelevant, leading you to over-react. Before booking a home inspector, do your due diligence – make sure they are ASHI certified  and read their online reviews (as you I am sure you did when you chose your Realtor).

Finally, once you move in, keep in mind that it is recommended that homeowners have their homes professionally inspected once every ten years.  The mere passage of time can take a toll on a home, and better that you find problems and correct them before they become big problems. Repeating pest and radon inspections at that time is also a good idea – they are also best addressed sooner rather than later.  If you have any questions about whether you should be getting your home inspected, please give me a call!  412.779.6060

RECENTLY SOLD — represented buyers.
Click the photo to see more of my past sales history!

 

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

THE BENEFITS OF BUYER’S AGENT

Why should we use a buyers agent when buying a new home?  We thought it was better to just call the listing agent.

It’s always a better idea to use a buyer’s agent who is focused on your home search rather than calling each listing agent of every property that you might be interested in.  First and foremost, a buyers agent is essentially no additional fee to you.  Buyers do pay a very small “broker fee” (at Howard Hanna, that fee is comparatively quite low, at $325), but the commissions are paid by the seller.  So there is no financial reason for you not to have Buyer representation!

Having a buyer’s agent offers a long list of advantages to you.  The agent will get to know your personal needs and wishes and be able to screen houses more effectively as well as target houses that might be a great match.  The agent will be able to compare the various homes that you see, helping you to objectively address the positives and negatives of each home as they relate to each to other.  You should expect a buyer’s agent to be able to do a detailed analysis of the comparable sales for you so that you can feel good about any offers you are making.  Your buyers agent will also be able to guide you through the inspection process, which can be very tricky these days with home inspectors being unusually critical of the homes they are inspecting.

Does this mean that you should sign a buyer agency agreement with the first agent you meet?  Absolutely not!  The internet offers a wealth of information about Realtors these days.  Before choosing a buyer’s agent, check their online presence.  Look at their qualifications – do they have certifications or other professional credentials?  Check out their online reviews on websites such as Zillow, Trulia, realtor.com, yelp and Facebook.  Do they have a personal website where you can learn further information about their business and services to you?  Feel free to request personal interviews of past clients if that is helpful to you.  Once you feel you have chosen the best match for your needs, engage that Realtor as your buyer’s agent and move forward, knowing that you are in good hands!

FEATURED HOMES

180 Summerlawn Drive

Beautifully remodeled open concept 17 year old home on ½ acre wonderful lot in a delightful Sewickley neighborhood close to Village. Four finished levels of living space including finished walk out lower level. Kitchen with new stainless appliances open to family room.  Main level laundry.  Large master suite. Four bedrooms, 3 full and 2 half baths. Third floor great room.  New roof. $599,000.  See photos….

444 Woodland Road

Privacy in the heart of Sewickley Village!  2.973 Acre yard with mature landscaping, sprawling lawns, in-ground pool, private patio and natural woodlands that provide a year-round buffer for this magical property, yet Village shops and restaurants are just a few blocks away! Renovate to restore the home’s original relaxed elegance, reminiscent of New England seaside homes.  Or replace with your own 21st century home of your design and creation!  A rare opportunity in Sewickley!  $825,000  See photos and more details

 

 

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

WHAT TO EXPECT ON INSPECTIONS

We just completed a home inspection and submitted our requests to the seller.  They did not respond well and felt we were too comprehensive in our list of requests, although they were all items the home inspector pointed out as issues in his report?  What are we to expect?

The home inspection process is as individualized as the people buying the homes.    Some sellers are so eager to sell their homes that they will gladly cede to your every demand.  Some homes are so well priced and so well received by the market that the sellers are willing to do virtually nothing with respect to inspection requests.  How your sellers respond will likely depend on how badly they want to sell to you, balanced with what they think their chances are of a sale to another buyer in the near future.  But there are a few guidelines to keep in mind when evaluating what to ask for on the home inspection and how to weigh the seller’s response.

Anything the seller has called out on the disclosure should not be part of your inspection requests – you should have taken these conditions into account when you were making your offer.  For example, if the seller has disclosed that the furnace is at the end of its useful life, it is not appropriate to ask for the seller to pay for a new furnace.

If the condition was easily observed when you visited the home, you should also have taken it into account when making your offer and not be raising the issue now.  For example, if you noted that the front sidewalk was badly cracked when you saw the home, that should have been addressed in your offer and you should not try to renegotiate price based on that condition after the inspection.

Finally, you should use some materiality standard for your requests.  Some buyers use a health and safety standard and focus on items that could put their health or safety in danger, such as electrical or radon problems.  Some use a major defects threshold and focus on items that are expensive to repair.  But as a general rule, it’s a good idea to let small items and maintenance items go, such as caulking bathtubs, tightening loose toilets and installing handrails on basement stairs (which no one except the home inspector cares about anyhow!)  If you focus on what really matters, you are more likely to establish a positive dialog with your seller and end up with a positive result.

FEATURED HOMES 

169 Backbone
New Roof May 2017! Directly across from Sewickley Heights Golf course and sited on a lush, professionally landscaped lot with expansive lawns, perfect for your outdoor activities, this home is move-in ready!  3 finished levels include 5 bedrooms, 3.5 baths, 2 working fireplaces, large deck, patio & delightful gazebo.  $595,000   See more details and photos on 169 Backbone HERE!

300 Chaucer Court
With its beautiful acre of land in an idyllic “up the hill” neighborhood, you can be moved in to host warm weather fun this summer! Throw memorable parties at this turn-key Sewickley home! The large deck and covered stone patios spill onto the manicured lawn, with sport court, outdoor bar, covered ping pong area and Rainbow playset. Inside, a stylish aesthetic seamlessly unifies the three finished levels. 4 bedrooms, 3.5 baths, 3 car garage. $799,000. Get more details and see more photos on 300 Chaucer Court HERE!

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

Sound Advice for Sellers

Why have so many deals fallen apart this spring?  We watch the market and see homes that sell and then come back on the market – what is happening?

You have unknowingly picked up on one of the flaws in the Pennsylvania Standard Agreement for the Sale of Real Estate.  In the inspection contingency contained in this agreement, the buyer has the unilateral right to terminate the agreement of sale if they find any condition in a home inspection unsatisfactory to them.  It does not have to be a major defect as it did in prior years.  It does not have to be a safety related concern.  It does not have to rise to a particular threshold of cost to repair.  ANY condition whatsoever that they find unsatisfactory – a scratch on a floor, a dented garage door, a stain on a carpet  — and they can terminate. They do not need to give a seller an opportunity to repair the item – they can just say “sorry, we don’t want your house.” They get their hand money back and the home is back on the market.

Unfortunately, this year buyers have begun to abuse this right to terminate, treating it like an option to buy a home.  And when they do this, it stigmatizes the home for future buyers. I have seen deals terminated for items as simple as non-operational dimmer switches and puddles in the driveway, without giving the sellers the opportunity to repair.  In other words, these are not serious buyers, and something they liked more probably came on the market.  They terminate, wasting everyone’s time and energy.

This is a terrible trend, but sellers, you don’t need to sit back and let this happen.  When negotiating an offer on your home, you can negotiate any term, and you would be well advised to indicate that buyer’s right to terminate before even asking the seller to repair should be stricken from the agreement.  The buyer is still protected because they retain the right to terminate if the seller refuses to make the desired repairs, but this solution provides a more appropriate playing field for all parties.

FEATURED HOMES:

302 Beaver Street

302 Beaver Street

Located in the absolute heart of the Village, you can’t help but love the amazing transformation of this historic gem.  Stylish and trendy yet exuding incredible charm, with new kitchen, new baths, new & refinished floors, new HVAC and so much more. Large yard, garage, 4 bedrooms, three finished levels, Pottery Barn aesthetic throughout. Still potential for further expansion and value enhancement! $595,000.

 

 

 

 

608 Broad Street

608 Broad Street

The contractors have just left this newly remodeled gem.  Less than a block from the Sewickley business district and two blocks from the hospital — you can’t get any more convenient than this! 4 bedrooms and 2 full bathrooms, including a dedicated master bath.  New kitchen with stainless appliances.  $389,900

As an Associate Broker at
HOWARD HANNA REAL ESTATE SERVICES,
Kathe Barge, CRS, ABR, CNE, is ready to answer any
questions you may have regarding your real estate needs.
Feel free to contact her at the office (412) 741-2200 x238,
or on her mobile phone (412) 779-6060.

Twelve Real Estate Tips You Should Know

You give a lot of advice each week – any way to sum it up quickly for those of us who need the Reader’s Digest version?

 

I recently came across a posting on one of my favorite Facebook pages that I shared on my Facebook business page (Kathe Barge Howard Hanna Sewickley)  that I think does an outstanding job doing just that for sellers!  Quoted from The Lighter Side of Real Estate, the following are words to live by if you are selling a home, presented in a brief, easily remembered format:

 

“Twelve Things You Should Know About Real Estate:

  1. A Home is Worth What a Buyer is Willing to Pay
  2. Updates May Not Increase the Value, But They Increase the Chances of Getting it Sold
  3. Cleanliness is Godliness
  4. Curb Appeal is the First (and Strongest) Impression
  5. Pet Odor and Clutter Leave the Longest Lasting Impressions
  6. Neutral Paint and Décor Will Always Appeal to the Masses
  7. Cheap Fixes or Updates Will Result in a Cheap (Low) Offer
  8. Everything is Negotiable
  9. Time is of the Essence
  10. Location Location Location
  11. Buyers Notice Things They Want to Change Before They Notice Any Updates
  12. When Priced Right It Will Sell”

Keep these principles in mind and apply them when selling your home and its sure to be a success!

FEATURED HOMES:

309 Quaker Road
$799,000

Picture perfect, modern aesthetic is combined with historic charm in this beautifully remodeled Sewickley Village home.  With 5 bedrooms, 4.5 baths, newer white kitchen, mudroom, main level office, 2 car garage and fenced backyard, this fantastic home is in impeccable condition throughout!

 

 

 

928 Blackburn Road
$1,050,000

This immaculate Sewickley Heights home was transformed from an historic barn just two decades ago!  On a private 5 acre lot backing to the Allegheny Land Trust, the main home features 4 bedrooms, 3.5 baths, an expansive great room with soaring ceilings and woodburning fireplace.  On the lowest level are the original stables with 4 stalls, but this space would also be perfect for other farm animals or vehicles.  The property also conveys with a renovated guest cottage with 3 BRs, 3baths.

 

 

As an Associate Broker at
HOWARD HANNA REAL ESTATE SERVICES,
Kathe Barge, CRS, ABR, CNE, is ready to answer any
questions you may have regarding your real estate needs.
Feel free to contact her at the office (412) 741-2200 x238,
or on her mobile phone (412) 779-6060.

The Score on Appraisals

Our neighbors home was under agreement and we just heard that it didn’t appraise.  Is this a common issue you face and how can it be prevented?

Appraisal failures have become more common since the 2008 recession and the tightening of lending standards.  All lenders are required to use pools of appraisers – they cannot control where the appraisal order goes or who does the appraisal.  In fact, lenders are to have no contact with the appraiser to avoid undue influence. Unfortunately, some lenders (typically the larger ones as compared to the small local lenders) use large appraisal placement services and an appraisal on a Sewickley home could end up being placed with an appraiser in Monroeville, or worse yet, in West Virginia or Ohio.  These non-local appraisers do not know our market and often miss the subtleties of our neighborhoods and inventory.   Additionally, many companies use very young people whom they pay a very low wage to complete the appraisal.  It becomes a volume business that many rush through, often missing important details (like that third bathroom).

If an appraisal fails (meaning it comes in under the agreed upon purchase price), there is almost nothing anyone can do to correct that appraisal.  Unless there is an egregious error, like missing a third bathroom, it is highly unlikely there will be an opportunity to increase the appraisal.  Therefore, it is important to set yourself up for success at the time of the initial appraisal.  To do this, I ask my sellers to provide a specific list of all updates they have made to their home in recent years.  I then personally meet the appraiser at the home and make sure that he is taking note of all of its special features.  I also provide him with a list of all of the home’s features and all relevant comparable sales and how they compared to the home he is appraising.  By having personal contact with every appraiser and helping him to understand the nuances of our town and the home he is appraising, my sellers are far more likely to receive the appraisal they need to keep their deal on track.

Should your home fail to appraise, rather than reducing your purchase price to meet the appraised price, a creative solution is to pay for the buyer to change lenders and start the appraisal process all over again.  This is usually less than $1000 and is usually cheaper than reducing the purchase price.  I have seen appraisals come in more than $100,000 apart in a two week time period, which only accentuates how many appraisers just don’t understand our area.  It’s usually not that the value isn’t there but that the appraiser just doesn’t get the market.  This solution could get your buyer the home they want and you the price you agreed to.

FEATURED HOMES:

309 Quaker Road
$799,000

Picture perfect, modern aesthetic is combined with historic charm in this beautifully remodeled Sewickley Village home.  With 5 bedrooms, 4.5 baths, newer white kitchen, mudroom, main level office, 2 car garage and fenced backyard, this fantastic home is in impeccable condition throughout!

 

 

 

204 New England
$699,500

Exceptional condition and a surprisingly spacious floorplan define this handsome, beautifully expanded Edgeworth home.  Three finished levels of living space.  Wish list features include main level mudroom and den, kitchen open to family room and attached garage, New master bath.  Pottery Barn aesthetic throughout. Large yard.

 

As an Associate Broker at
HOWARD HANNA REAL ESTATE SERVICES,
Kathe Barge, CRS, ABR, CNE, is ready to answer any
questions you may have regarding your real estate needs.
Feel free to contact her at the office (412) 741-2200 x238,
or on her mobile phone (412) 779-6060.

New Years Resolution #1

If there was one thing you would advise us to do to our home this year, what would that be?

Whether you are planning to sell your home this year or not, the best thing you can do to your home this year is a home inspection! We all live in our homes but rarely take the time to stop and give them a careful look. Weather beats up the outside of our homes year round. Caulking fails, flashing fails, paint peels and exposes wood to rot. We forget to clean our gutters on a regular basis – gutters and downspouts fill with decaying debris, causing water to back up into our homes and cause mold problems. We forget to have our furnaces serviced and fittings loosen and cause condensate to leak and rust our furnaces. The list goes on and on. Simply living in and not doing a regular check up on your home, you are leaving it open to the possibility of major repair bills later and major depreciation in your investment’s value. A home inspection will give you a to do list of projects to tackle throughout the year to keep your home in great shape and maintain its value!

You may not think about this until you go to sell your home. Some of the wear and tear may be obvious to a buyer, who will typically have checked out every available home, be able to see signs of your “benign neglect,” and pass on yours because of its comparatively negative condition. Even if a buyer doesn’t’ notice at first, there is no doubt that a home inspector will notice! After working hard to get your home sold, you may find yourself in the all too common situation of being presented with a long list of inspection requests that you need to complete in order to hold your deal together, or worse yet, a buyer who backs out of your deal because the house needs “too much work,” leaving you in the position of having to fix everything and start all over again. A homeowner should expect simply keeping a home in acceptable condition will cost them $3,000 – $10,000 a year, depending on the size of the home – some years wil be more if its time for a major project, and some less. If you’re not investing this, chances are someday you will when you are faced with a long list of inspection issues.

The first thing on my household resolution list this new year is a home inspection and I suggest you add it to the top of your list as well. Give me a call if you need the names of reputable local inspectors.

Will Our Deal Close?

Dear Kathe:

What assurances are there to a seller that if they enter into a contract to sell their home, it will actually close?

Reaching an agreement on the sale of your home is an important first step to getting your home closed. However, before a seller has any assurance that a home will actually close, several hurdles must be overcome. First, the inspections have to be completed. In most instances, the buyer has the right to terminate a transaction if they learn anything on the inspection that they are uncomfortable with, and in almost every instance, the buyer has the right to terminate if the seller does not agree to make the buyer’s requested repairs. So a seller has no assurances at all that their home will close until the inspection period is complete, which generally takes 21 days.

The same thinking would apply if the Agreement includes an appraisal contingency – until the appraisal is complete (which also takes 21-30 days), there is a risk that the home will fail to appraise and the transaction will not close.

If the buyer has a mortgage contingency, then there is a risk until a “clean” commitment letter is received from the lender that the buyer will not get their loan approved, in which case the transaction will not close. Usually it takes about 45 days from the date of agreement to know with any certainty that the buyer has received a loan commitment.

There is also the rare instance where a buyer never provides the contractually specified deposit money or second deposit money. This is a breach of agreement and if this happens, it’s reasonably unlikely that the buyer will cure that breach and close.

Finally, very rarely there are buyers who complete all of the steps in the process and just refuse to close. In those instances, the seller is often entitled to the deposit money, but that may seem like a small consolation prize when their home is empty and back on the market.

Working with a skilled real estate professional will help you to manage the risks and move toward a successful closing. So while the short answer is that there is never a guarantee until the home actually closes, with proper management of the details the risk to a seller of moving out and leaving behind an empty home can be minimized.

 

Selling with Old Mechanicals

Dear Kathe,

We have a very old (25 years) furnace.. It is still working well and we don’t have the cash to replace it. We are planning to sell our home next year. What advice do you have?

A 25 year old furnace is a very old furnace, well beyond the useful life expected of such equipment. If a buyer makes an offer on your home and then finds out how old your furnace is, there is a very high likelihood that they will be asking you to buy a new furnace as part of their inspection response. There are a few things you can do to set yourself up for a positive outcome.

First, when you complete your seller disclosure, be sure to write on the document that the furnace is past the end of its useful life and may need to be replaced soon. Price your home accordingly and be sure that your agent highlights to buyers agents that you have priced your home at a lower price point because of its older mechanicals. This will prevent the buyer from expecting you to buy them a new furnace – they should take the age of the furnace into account when making their offer.

Second, put a home warranty on your home when you list it. This will provide coverage to you should the furnace break while you own the home and will give the buyer 12 months of coverage should anything happen in their fist year of ownership (and it is renewable).

Finally, consider buying a new furnace. Many contractors are willing to accept payment at closing if you make arrangements for this upfront. With a new furnace you can ask more for your home and are more likely to draw more enthusiasm form the buyers who do see your home.

A Pre-inspection is Your Best Offense!

Dear Kathe,

Friends of mine just had the sale of their home fall through because of a home inspection. How can that be prevented?

 Yes – sellers should have their home pre-inspected before listing to prevent these kinds of issues! Finding a buyer and agreeing on a purchase price is only one small component of a real estate transaction and yet it is often all that sellers focus on.  What happens between then and closing, however, is often the more difficult part of the process.  Issues with a home uncovered on an inspection often cost a seller thousands in unexpected repairs and when sometimes even result in a terminated transaction.  Inspectors are incredibly thorough (sometimes even finding problems that aren’t problems) and so every home seller should anticipate that the home inspector will find deficiencies and that the buyer will expect correction.

All home sellers should seriously consider having their homes pre-inspected.  For as little as $250 – $500 for a basic pre-inspection you will quickly have an insiders view of how a buyer’s inspector will assess your home.  Use the inspection as a maintenance check list – find a handyman to come in and fix all of the little things so that they don’t come up again on a buyer’s inspection.  If there are larger items that you do not have the ability to repair, such as a roof nearing the end of its useful life, get an estimate or two for the repair or replacement.  Note the issue on your disclosure and include a copy of the estimate.  This should prevent you from having to credit the buyer for the repair later – buyers are supposed to review the disclosure and take any disclosed items into account in making their offer to you.

Of course, if your inspection is good or just has a lot of little items that a handyman can fix, attach the handyman’s receipt showing the repair provide a copy of the inspection in the house for buyers to see with a note indicating that the home has been pre-inspected and repaired and that they buyer can buy with confidence knowing that they are buying a house in great shape!  In a town full of older and aging homes, this will really help your marketing!

So before you list your home – consider a pre-inspection.  It will give buyers the confidence they need to move ahead with a purchase, may combat concerns that there are likely problems that would lower their initial offer to you, and will hopefully result in a smooth transaction once you do have your home under agreement.

 

The Long Wait Until Closing

Continuing from last week:

Dear Kathe,

We’re first time home buyers – where do we begin? 

At this point in our journey to your new home, hopefully you have resolved any home inspection issues that you have and your financing is in process.

There are many pieces to the home financing puzzle that you will not see and some that you will.  Financing has gotten quite tight now and you will need to be prepared for a high level of documentation required by the lender.  They may ask you to document sources of deposits.  They may ask you to document other expenses you are responsible for.  They may need copies of letters of employment or bonus guarantee letters.  Be prepared to respond quickly to any and all requests.  While you are addressing these requests, the lender will order an appraisal to confirm value of the home.  There is a range of reasonable in which a home may sell – the lender is simply trying to make sure that you are in that range.

Once your loan is approved you begin the long wait until closing.  If you had a particularly delayed closing, you will begin to wonder if you are supposed to be doing something else.  The next steps happen right before closing.  You will set up your insurance coverage on the home with your insurance agent a few weeks in advance.  Coverage options vary widely so you will want to work with an insurance agent who will thoroughly review all of your options with you.  About a week before, you will need to call the utility companies to move the utility bills to your name.  If you forget to do this, the utilities will simply be turned off and it will cost you more to get them turned back on again.  For water and sewer, you will need to show up in person to get them connected, so be sure to schedule that in to your work schedule.  Finally, the day before closing you will do your walk through to make sure the home is as you expected it would be.  If the seller accidentally removed something you thought was to remain or forgot to make a requested repair, now is the time to raise those issues.  Once you close, so does your window of opportunity to resolve any last minute concerns with the seller.

On the day of the closing, you will spend about an hour signing many documents and presenting a cashier’s check for any balance you owe above and beyond the mortgage.  Once that is completed, you will receive the keys and may begin the happy process of unpacking into your new home!

Is There Such a Thing as “As Is”?

Dear Kathe,

We would like to sell our home “as is”and avoid the hassle of repair negotiations.  How do we do that?

“As Is.” The statement comes up more often than you might imagine.  Negotiations commence on a home and frequently, sellers are not able to achieve their hoped for sales price.  With a sales price lower than imagined, sellers often assert “well then they are buying it AS IS.”  Quite a bold statement – is that really possible?

Put on the buyer’s hat for a moment.  When  buyers agree on a price to buy a home, they are assuming that all is in good order unless it is something obvious to them when they  saw the home or it was on the Disclosure.   If an inspection discloses major problems, how can the home possibly be worth what they had offered?   For example, if the inspection shows the furnace needs to be replaced, how could the home possibly be worth what it was worth when it was believed that the home had a working furnace?  Quite simply, it’s not.  Suggesting that a buyer will need to take the home “as is”  implies that the seller is hiding something – that there are problems that could drive the price down further when discovered.

So what’s a seller to do if he doesn’t want to get stuck footing major inspection repair bills?  The two best options are the seller disclosure and a pre-inspection.  It is wise to disclose absolutely everything that could possibly come up – your agent should be able to review the disclosure in detail with you and make certain that you aren’t forgetting things that could come up on an inspection.  A pre-inspection is also critical for any seller who is inclined toward trying to sell “as is.”  A buyer needs a fair opportunity to determine what the “as is” condition is and a pre-inspection is a critical piece of that puzzle.  All conditions disclosed on the disclosure or in the pre-inspection can be excluded from the buyer’s  inspection, dramatically decreasing the chance that there will be any surprises on the buyer’s inspection that the seller will be asked to pay for and significantly increasing the seller’s likelihood of achieving the illusive “as is” sale.

Avoid an Inspection Fall-Through

Dear Kathe,

I’ve heard that agreements on many homes have fallen through lately from home inspections – why is that?

Our market has traditionally been one where buyers know they are buying old homes and allow the seller some leeway in not presenting a “perfect” home from an inspection standpoint. However, in many parts of the country, this is not the case. Sellers are expected to remedy all issues noted by home inspectors prior to closing. As more and more people migrate here from other parts of the country, our prices are going up, but so are the buyers’ expectations as to a seller’s responsibility for concerns discovered on a home inspection. At the same time, inspectors are getting significantly more particular. And so yes, it is absolutely possible to have purchased a home only two years ago and have new concerns arise that clearly existed and were overlooked when you bought your home. And yes, it is equally possible that you will be expected to fix them and if you refuse, your sale might fall through.

This can often leave a seller feeling like they are the unlucky one who got stuck holding the “hot potato.” As the years pass, the list of “hot button” issues mounts and if you are the owner when the issue is discovered, you will be the one paying the bill even though the home was bought and sold many times in advance of your ownership. These hot button issues include items such as radon, mold, damp basements, lead water lines, asbestos (fireplace inserts, duct tape, pipe wrap or flooring) knob and tube wiring and pushmatic electric panels. If your home has any of these issues, you should figure you will be the one footing the bill and address them before they become an issue on a home inspection.

The best way to prevent an inspection fall through or an unexpected bill for defects is to have your home inspected before you put it on the market. A pre-inspection will allow you the opportunity to fix those items that can be fixed and disclose the rest to save yourself from a laundry list of requests. Be sure not to ignore the small stuff that comes up or that you know is wrong. For example, when I list a home, I specifically ask sellers if all of their windows open, stay open, shut and lock, and if any are cracked or have broken seals. Sellers more often than not disclose no issues with their windows and yet it is one of the most frequent inspection deficiencies. Take the time to do your homework – get your home inspected – repair or disclose any possible concerns – and save yourself from a long last-minute repair list and potentially even from losing your sale.

Should You Pre-Inspect?

Dear Kathe,

A friend in California tells me that all home sellers pre-inspect their homes before listing them, but that’s not something I hear a lot about here in Pittsburgh. Do you recommend a pre-inspection to home sellers?

 

Issues with a home uncovered on an inspection often cost a seller thousands in unexpected repairs and can sometimes even result in a terminated transaction.  Inspectors are incredibly thorough (sometimes even finding problems that aren’t problems) and so every home seller should anticipate that the home inspector will find deficiencies and that the buyer will expect correction.  To make the home selling process as smooth as possible and avoid finding themselves in the position of having large inspection bills or worse yet, a “dead deal,” sellers can have their home pre-inspected.

All home sellers should seriously consider having their homes pre-inspected.  For as little as $350 – $500 for a basic pre-inspection you will quickly have an insiders view of how a buyer’s inspector will assess your home.  Use the inspection as a maintenance check list – find a handyman to come in and fix all of the little things so that they don’t come up again on a buyer’s inspection.  If there are larger items that you do not have the ability to repair, such as a roof nearing the end of its useful life, get an estimate or two for the repair or replacement.  Note the issue on your disclosure and include a copy of the estimate.  This should prevent you from having to credit the buyer for the repair later – buyers should review the disclosure and take any disclosed items into account in making their offer to you.

Of course, if your inspection is good or just has a lot of little items that a handyman can fix, attach the handyman’s receipt showing the repair and provide a copy of the inspection in the house for buyers to see with a note indicating that the home has been pre-inspected and repaired and that they buyer can buy with confidence knowing that they are buying a house in great shape!  In a town full of older and aging homes, this will really help your marketing!

So before you list your home – yes, you should consider a pre-inspection.  It will give buyers the confidence they need to move ahead with a purchase, may combat concerns that there are likely problems that would lower their initial offer to you, and will hopefully result in  a smooth transaction once you do have your home under agreement.

The Easy Way Out

Once you have lived long enough, you realize that if there is something to be done, there is usually an easy way and a hard way.  When it comes to selling your home, why not make it easy? If you make it easy, you are far likelier to have a successful transaction.

First and foremost, make access to your home easy for buyers.  Use a lockbox and always be ready to show.  Busy agents with serious buyers don’t have time to track down keys held by listing agents, or worse yet, schedule showings around your listing agent’s schedule.  You can’t sell if you don’t show – make it easy with lockbox access (which notifies your agent immediately every time it is accessed) and be ready to accommodate last minute showing requests.

Make negotiations easy.  When you do receive an offer, do not get upset or offended.  Every buyer approaches negotiations differently.  Some will need to give you long letters explaining their analysis of value.  Don’t take it personally – just understand that it is a unique opportunity to understand how buyers perceive your home.  If one buyer is bold enough to tell you, the chances are there are others with the same concerns.  While you likely put your heart into the home, you are leaving and need to detach.  Be pleasant and non-defensive in your response and try to focus on the one or two points in the offer that concern you the most.  The more flexible and good-natured you appear, the easier it will be to get and keep the buyer in the deal.  Be easy to reach during negotiations as well.  The more protracted the negotiations, the greater the chance the buyer’s interest will wane and you will lose the deal.

Make inspections easy.  I have said this many, many times, but if there are conditions that exist that are called out by the inspector and they were not on your disclosure, you should expect to pay for them or lose your deal.  You can make this very easy on both you and the buyer – have your home pre-inspected – then a buyer can make an offer knowing the condition at the time of offer and you should sail through the inspection.

Sound easy?  It is!  Keeping these simple concepts in mind will make your home sale much easier.

The “Hot Potato”

Who can forget the old childhood game – pass the hot potato?  The object, of course, was to not be holding the hot potato when the music stops.  We have our fair share of “hot potatoes” in real estate too, and just like in the childhood game, someone always gets stuck holding the hot potato.

You may wonder, what are these hot potatoes of which I write?  Years ago, it was radon.  If you were selling your home and it had radon levels in excess of the EPA limit of 4.0 pCi/L, you got stuck paying the remediation bill (usually less than $1000) because a buyer isn’t going to agree to buy a home with a radon problem.  That hasn’t changed, but if a home has sold in recent years and ever had radon, chances are it has been remediated.

Next, the media exploded with stories of illness caused by mold in homes and suddenly, sellers were faced with mold inspections.  There is the very bad black mold (Stachybotrs), but honestly, all molds have the potential to make you sick.  As you can imagine, buyers aren’t going to buy a home with a mold problem either, and once again, the seller bears the cost of remediation and often, the cost to solve the cause of the mold problem as well. The cost can be several hundred to several thousand dollars.

These days, the hot potatoes have expanded to include two tricky electrical issues.  Pushmatic electrical panel boxes are very expensive to maintain and the manufacturer is no longer in business.  Most buyers will require a seller to replace these panel boxes – the cost per panel is generally $1500+.  Knob and tube wiring is the other big hot potato for homes built before 1930.  Rewiring an entire home can range between $10,000 – $20,000 and so many homes retain this original wiring.  Most insurance companies will no longer issue new insurance policies on homes with this antiquated wiring.  Therefore, if knob and tube wiring is discovered on an inspection, the cost of the rewire also generally falls to the seller – very few buyers are willing to buy a home (at least not unless they are getting a substantial discount) if it has knob & tube wiring present.

If you own a home with one of these hot potatoes – radon, mold, pushmatic panel or knob & tube wiring – things that years ago wouldn’t have raised an eyebrow – you should expect that when you go to sell your home, you will be stuck with the cost of getting rid of the hot potato, if you haven’t already done so!